Temasek Holdings sign at their office in Singapore.
Munshi Ahmed Bloomberg | Getty Images
Temasek, which did not provide an exact breakdown of its U.S. assets, said the U.S. region accounted for 22 percent of its portfolio.
The firm, whose portfolio value rose about 2 percent to $389 billion Singapore dollars ($288 billion) in the fiscal year ended March, added that it was cautious on the Chinese market.
He pointed out that while China's government has a pro-growth stance that will help its recovery, structural challenges in the economy remain, and without growth in domestic demand, China's economy and inflation will continue to grow. There will be downward pressure.
Chia Song Hee, deputy CEO of Temasek, said the challenges facing China are very much on the demand side of the economy.
Chia said companies that “drive domestic consumption or cater to domestic consumption”, such as biotech, in sectors such as robotics and the electrification and electric vehicle value chain, will be interesting.
He added that while some of these businesses have export potential, due to geopolitical risks, the firm is really looking at companies that can fully rely on the local market and export to other countries. Less dependent on
Overall, Temasek will take a cautious approach and continue to monitor government policies in the world's second-largest economy, the state investor said. Chinese assets made up 19% of Temasek's portfolio, down from 22% in fiscal 2023.
The firm is also looking to invest in Japan, which has seen increased interest from foreign investors as its markets hit record highs this year.
Japan's corporate scene is benefiting from structural and cyclical tailwinds due to corporate governance reforms, explained Alpan Mehta, vice head of private equity investments at Temasek.
“Over the past few years, we've seen an increase in private equity activity in Japan, and these are some of the funds that we're co-investors with. So our idea is to invest with them, co-invest with them. Is. “
Temasek has seen a 1 percent increase in its exposure to Japan, which was “almost nothing a few years ago,” Mehta said, adding that it was still “early days.” He pointed out that some of Temasek's portfolio companies have ties to Japan, such as Vertex Capital, as well as real estate firms Capital Land and Mapletree.
Along with a large domestic market and supply chain diversification, the firm also sees opportunities in Europe, where it sees opportunities for the green energy transition.
For the 2024 financial year, Temasek has invested SG$26 billion in sectors such as technology, financial services and healthcare.
Outside of Singapore, most of Temasek's investment capital went to the US, followed by India and Europe.
After marking its unlisted assets to market, Temasek's marked-to-market net portfolio value rose to SG$420 billion, up from SG$411 billion a year ago.
Temasek said it chose to release the metric because unlisted assets made up the bulk of its portfolio at 52 percent, up from 20 percent in 2004. line with our colleagues.”
“We've found over the last decade that we have more of an edge on the private side, just because it's a function of our better reach, how we can work with these companies and so on,” Spahimlani said.
He explained that the firm does not have a target ratio for unlisted and listed assets in its portfolio, but will invest when it finds the right opportunities.
“We need to balance liquidity versus private assets. So they will always be a balance, but we don't have a specific target. I think we're pretty comfortable,” he adds.
While its one-year total shareholder return was just 1.6%, up from a 5% decline in 2023, Temasek's 10-year total shareholder return held steady at 6%, while the 20-year metric rose 9 to 7%. reduced to %
This was due to the release of the 2004 fiscal year, which saw a 46% one-year TSR following the SARS outbreak.
Separately, the company invested SG$33 billion for the financial year, resulting in a net investment of SG$7 billion, compared to a net investment of SG$4 billion a year ago.